Visual guide: What you must do for customers

If you sell products

Who it applies to

All businesses who sell products that are usually for personal or household use, including small and secondhand businesses, pop-up shops, auctions and regular Trade Me sellers. People who hold one-off garage sales or post occasional online auctions do not have to follow the CGA.

What you must do

You must offer products that are:

of acceptable quality

fit for purpose

match the description given

match any samples or demonstrations given

sold at a reasonable price, if a price wasn’t agreed beforehand

able to be legally sold.

You must also:

Make sure deliveries arrive at the agreed time and in acceptable condition.

Have spare parts available and a way to offer repairs. This might be through an arrangement with the manufacturer or a trusted repairer. If spare parts and repairs aren’t available, tell the customer before finalising the sale.

Remedies for problems

If you do not meet one these guarantees, a customer can get a remedy — a repair, replacement or refund — from you. Which you offer depends on whether the problem is minor or serious.

If you sell services

Who it applies to

Tradespeople, professionals, banks, utility providers, and all other businesses that provide services that are usually for personal or household use. This also includes schools, hospitals and government departments.

What you must do

You must offer services that are:

done with a reasonable level of skill and care

fit for the purpose you and the customer agreed on

cost a reasonable amount, if a price wasn’t agreed beforehand

completed in a reasonable time, if a timeframe wasn’t set beforehand.

Remedies for problems

If you do not meet one of these guarantees, a customer can get a remedy — a repair, compensation or refund — from you. Which you offer depends on whether the problem is minor or serious.

If you manufacture, import or distribute

Who it applies to

Any business that assembles, makes or processes products that are usually for personal or household use. This includes businesses that manufacture products, attach their brand to manufactured products, or import or distribute products made overseas.

What you must do

Your products must:

match the description

be safe, durable, of reasonable quality, and have no undisclosed defects

have spare parts and repair facilities available for a reasonable time.

You must also follow any terms of your manufacturer’s warranty.

These guarantees apply to all new products and imported secondhand products sold in New Zealand for the first time.

Remedies for problems

If you do not meet one of these guarantees, you must repair or replace the product within a reasonable time, or pay damages for the loss in value compared to the purchase price.

If a customer complains, find out as much as you can before deciding what — if any — remedy to offer.

When these guarantees don’t apply

You don’t have to give a remedy if the customer:

got what they asked for but simply changed their mind

misused or altered a product in any way that caused the problem, eg not following instructions for use

damaged, lost or disposed of the products after delivery

knew about the fault before they bought the product

asked for a service to be done in a certain way against your advice, or was unclear about what they wanted

took an unreasonable time to return the products or cancel the service

experienced a service problem that was outside of your control, eg a natural disaster, or was caused by someone you are not responsible for.

The CGA may also not apply if you sell a product or service to another business. This depends on whether you have contracted out of the CGA.

Contracting out

If you provide products or services that are usually for personal or household use to other businesses, CGA requirements typically apply but you may be able to contract out of this law. Contracting out means a written agreement that a business does not have to meet the requirements of a specified Act.

Businesses can only contract out of the CGA if:

dealing with another business or person in trade

both sides agree this law won’t apply

this agreement is in writing

it’s fair and reasonable to seller and business buyer to contract out.

If it’s only done verbally — or contracting out is not mentioned — the CGA applies.

How the CGA is enforced

If you break any of these rules — or you and your customer can’t reach an agreement about a complaint — your customer can choose to take the matter to the Disputes Tribunal or District Court.

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